IRS faces $20B funding gap, risking fewer audits and a $140B rise in national deficit.

The IRS faces a $20 billion funding shortfall due to legislative language that has frozen the funds, potentially increasing the national deficit by $140 billion. Treasury officials are urging Congress to unlock the funds to prevent a hiring freeze and fewer audits of wealthy individuals and corporations. The IRS had received $80 billion under the Inflation Reduction Act but has since lost $1.4 billion in budget cuts. This additional cut could leave the IRS with insufficient funds for enforcement by 2025.

November 26, 2024
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